Here is a question I answered about the “Deed in Lieu” option. Deed in Lieu means giving the bank back the house by agreement, right away, instead of making them go through the whole foreclosure process and spending the legal fees required.

Question: I can no longer afford my house. After a reduction in my husbands pay, my car dying , my husbands garnishment, and excessive debt. My mortgage company said that a deed in lieu is my best option. I do not wish to stay in my home because property taxes are outrageous 7600 for 163000 home. My gas bills are over 300 a month and the home is too big for my family. My house is underwater as well.

My Answer:

A deed in lieu is just one of several options available. Banks do not always accept deeds il lieu of foreclosure. There are strict rules set by banks for the bank to take back the house instead of foreclosing. Some of the banks require that the property be listed with a broker for several months.

It is important that you and your husband meet with an attorney to discuss all of your options. Some other options may include bankruptcy or defense of the foreclosure action or a combination of the two. Because your husband’s paycheck is being garnished, a bankruptcy, which can stop the garnishment may be a strong option.

Daniel J. Winter
BankruptcyLawChicago.com
djw@DWinterLaw.com
847-244-8180
Offices in Lake County, Chicago, Skokie and Oak Lawn, Illinois